Defaults affecting bank loan

BankHater

I have 2 defaults and 1 ccj on my credit file

I was accepted for a 5k overdraft by the bank last week

I then applied for a loan. This was rejected on the basis that they want the defaults cleared first.

Should I settle them in full? 1 of the defaults if for santander bank charges which I dont owe but its affecting me so I will have to pay up.

Bank says when system updates next month and they can see the defaults have been paid then they will give me the loan.

I do have a good income as noted by the bank employee

settle up in full or offer to pay something?

Tixy

If you can afford to settle them in full then some lenders will be more likely to lend to someone with satisfied defaults rather than outstanding defaults.
Some potential lenders make very little distinction and will decline people even if the defaults are satisfied.

Depending on when you settle up it could take more than a month for this to be reflected on your credit file. I would assume it may not be updated until 2months.

Do you have definite confirmation that the bank has said they will definitely offer you a loan if the defaults are satisfied? that is pretty unusual, a lender will usually not be able to say whether you would be accepted for a new loan depending on 1 thing on your file changing. Usually the best they would say is that you would stand a better chance once the defaults are paid and that they think it would be worth you applying again.
Even if you are accepted for a loan the still visible satisfied defaults could well mean you are only accepted at a comparatively high APR.